Baldacci outlines energy agenda

AUGUSTA – Concerned that Maine is exporting more power than it uses, Gov. John E. Baldacci said Wednesday he will create a special panel to gauge the pros and cons of remaining in a regional power distribution group known as the New England Power Pool.

“I just want to make sure that we’re not carrying everybody else’s water,” the governor said. “And that we’re looking out for Maine residents and Maine businesses first.”

Baldacci made his remarks as he outlined his energy agenda for the remainder of the short legislative session, which is scheduled to adjourn April 19. Although the governor’s bill was still being revised Wednesday afternoon, the major points of Baldacci’s energy initiative include:

. Increasing renewable power resources in Maine by 10 percent by 2017, including wind, tidal, biomass, certain hydroelectric, geothermal, and solar power.

. A biodiesel blended fuel excise tax reduction of 8 cents per gallon for companies selling motor fuels that contain at least 2 percent biodiesel by volume. The bill provides that the General Fund will reimburse the Highway Fund for approximately $20,000 in revenues lost in the first year as a result of the initiative.

. Imposing new appliance-efficiency standards for commercially available energy consuming products that promote energy conservation and do not unreasonably affect the cost of the product.

. Volume buying by state government and other public entities through a public fuel purchasing pool for the joint purchasing of heating fuels.

Baldacci said the price Mainers pay for their electricity is influenced by NEPOOL, the regional organization of bulk power generators, transmission companies and others that make up the New England wholesale electricity market, which is overseen and administered by the federally created ISO New England.

“These organizations make rules and establish procedures for the wholesale electric power market, and operate a regional ‘power grid’ that governs and controls 350 power generating units, more than 8,000 miles of transmission lines, and a generating capacity of 28,000 megawatts,” Baldacci said. “Recently, Maine industries and businesses which use large amounts of electricity have begun to question whether Maine’s participation in NEPOOL and ISO New England has a positive or negative impact on the prices we pay for our electricity. The answer to their question is not immediately clear. … but the seriousness of their concerns … and the potential impact on their businesses and on the Maine economy warrants investigation.”

To that end, the governor will sign an executive order convening a task force to undertake an in-depth review of the advantages and disadvantages of membership in NEPOOL and ISO New England.

“If the task force concludes that the disadvantages exceed the advantages, I will ask the task force to determine what options are available to Maine if it chooses to leave NEPOOL or have the transmission and distribution utilities in Maine withdraw from participation in the system,” Baldacci said.

To increase the state’s power producing capacity, the governor said, he would support new hydroelectric projects that were geared either toward upgrades at existing facilities or the installation of new, small generation plants at existing dams.

Citing a great potential energy source in wind power, Baldacci acknowledged it would be a challenge to persuade people to get used to the idea of watching a sunset behind a mountain sprouting a large wind-driven power generation fan. Still, he joked that Mainers are already aware of the state’s untapped energy potential.

“We have an enormous wind supply that’s generated outside of Augusta – although nothing compares to Augusta,” he said with a laugh.